Form 1120 (Part 2) Schedule C, Schedule D of Form 1120

Hi Readers,

This Blog is in continuity with my previous blog, where we have discussed some of the components of Form 1120, If you have missed it, please go through the below link

https://www.taxacc20.com/2022/06/form-1120-form-1125a.html

Let’s get started with other points of Form 1120

Point 4: Schedule C (Dividends And Inclusions)

It includes
(a)    Dividends from less-than-20%-owned domestic corporations (other than debt-financed stock)
(b)    Dividends from 20%-or-more-owned domestic corporations (other than debt-financed stock)
(c)   Dividends on certain debt-financed stock of domestic and foreign corporations
(d)    Dividends on certain preferred stock of less-than-20%-owned public utilities
(e)   Dividends on certain preferred stock of 20%-or-more-owned public utilities
(f)      Dividends from less-than-20%-owned foreign corporations and certain FSCs
(g)    Dividends from 20%-or-more-owned foreign corporations and certain FSCs
(h)    Dividends from wholly owned foreign subsidiaries
(i)      Dividends from certain FSCs

(j) Section 250 deduction (attach Form 8993)

What is Section 250

It provides for a deduction with respect to Global Intangible Low-Taxed Income (GILTI) and Foreign-Derived Intangible Income (FDII). The deduction is only available to domestic corporations (except that the GILTI deduction is also available to individuals that make a section 962 election)

(a) For income earned by a domestic corporation through its controlled foreign corporations, section 250 provides a deduction of 50%* of Global Intangible Low-Taxed Income.
(b) For income earned by a domestic corporation through its U.S.-based operations, section 250 provides a deduction of 37.5%* Foreign-Derived Intangible Income (FDII).

Schedule D : It is the master form, figures from other forms are fed into it.

Part1:Short Term Capital Gains and Losses-(Assets held for less than 1 year)

Part2: Long Term Capital Gains and Losses-(Assets held for more than 1 year)

Part3: Summary of Part 1 and Part 2